Over the past week, we have heard from many of you with questions regarding the tax filing deadline, government stimulus plans, resources for businesses, and our office availability. We wanted to take a moment to send a note addressing these questions.
Has the State of Illinois extended its tax filing deadline?
Yes, the State of Illinois announced yesterday that it would extend its filing deadline to July 15. Wisconsin has also extended its deadline to July 15.
At this time, state filing deadline will vary by state. If you have questions regarding a state’s filing deadline, the best source of up to date information is the state’s tax agency. Visit https://www.taxadmin.org/state-tax-agencies for links to each state’s tax department.
How do my commercial insurance policies respond to the current Coronavirus (COVID-19) situation?
Click here for a Q&A document from one of our insurance companies about what coverage might be available.
My tax return has already been filed and my balance due was scheduled to be paid by direct debit, will this automatically be deferred to July 15?
No, the direct debit payments will not be automatically rescheduled to July 15. If you do nothing, the payments will be made on the date you chose (April 15 in most cases). The IRS has offered the following option to cancel a scheduled Federal payment:
You may cancel your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537 and providing SSN, amount, and bank account number. Please wait 7 to 10 days after your return was accepted before calling. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
Click here to read more filing and payment deadline FAQs from the IRS.
You may also contact your bank to place a stop payment on the scheduled direct debit (fees may apply).
If you choose to stop your scheduled direct debit, please contact our office for a payment voucher and plan to mail in your payment by July 15.
If you had planned to make your payment by mail with a payment voucher, and you have not already mailed the payment, the new deadline for Federal and Illinois payments is July 15.
For returns that have not yet been filed, we can provide you with a voucher if you would like to mail your payment by July 15.
Has the schedule for 2020 Federal estimated payments been impacted by the change in the filing deadline?
Yes, first quarter 2020 Federal estimated tax payments are postponed from April 15 to July 15, 2020. The payment deadlines for the balance of the year remain the same: June 15, 2020 for second quarter, September 15, 2020 for third quarter, and January 15, 2021 for fourth quarter.
Note that if you have already filed your tax return with direct debit payments scheduled, those payments will occur as originally scheduled (the first quarter payment will be debited on April 15, 2020).
We will monitor if states revise their estimated payment schedules to match the IRS.
What should I do if I am unable to file my tax return by the deadline?
Contact our office to file an automatic extension for your Federal or state income tax return. The extension must be filed by the filing deadline and extends the deadline to October 15. Note that an extension does not extend the deadline to pay. One of our preparers will review your file in conjunction with filing the extension and notify you of any balance that should be paid by the filing deadline.
I’ve already filed my tax return but haven’t received my refund. Is there a way for me to check the status?
Yes, you can check the status of your refund online, using the links below, within 24 hours after the IRS receives your e-filed return or 4 weeks after mailing your paper return.
Check the status of my Federal refund
Check the status of my Illinois refund
Check the status of my Wisconsin refund
The IRS recognizes e-filing with direct deposit as the fastest and safest way to get your federal tax refund. The IRS states that the majority of e-filed tax returns with direct deposit will be processed within 21 days of IRS e-file acceptance. Taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit may experience a longer time frame to receive their refunds.
I normally pay my tax preparation bill when I pick up my completed tax return at your office. What payment options are available while your office is closed to clients?
Payments can be made by credit or debit card by calling our office at 847-367-0888, or by check mailed to our office: Kakenmaster & Associates, 333 Peterson Road, Suite E, Libertyville, IL 60048.
If you are receiving your completed tax return by mail, a preaddressed envelope will be included for returning the signature documents required to electronically file your tax return. Please include a check for the tax preparation fee with the signature documents.
If you are receiving your tax return through our client portal and signing your signature documents electronically, a copy of your bill will be loaded to the client portal. Please either mail a check to our office or call our office to pay by a credit/debit card.
When signing the signature documents required for electronically filing my tax return, what date should I note for my signature?
Please use the date of signature when signing. For signatures completed electronically, a date stamp with the current date will automatically be applied.
Are there any updates on the government’s plans to issue stimulus payments?
Yes, the Coronavirus Aid, Relief and Economic Security (CARES) Act, passed by the Senate, includes stimulus payments to individuals. It is anticipated that the House of Representatives will approve the Act this week, sending it to the President for his signature.
Under the plan, single individuals will receive $1,200, those filing jointly will receive $2,400, and parents will receive $500 for each child under age 17.
The payments do begin to phase out for individuals with adjusted gross incomes of more than $75,000 ($150,000 for those filing jointly), and individuals making more than $99,000 ($198,000 for those filing jointly) would not qualify at all.
Based on the information currently available, 2019 tax returns (2018 if the taxpayer has not filed in 2019) will be used to determine the payment amount. It is anticipated that payments will be reconciled based on 2020 income, and Taxpayers who receive a smaller payment than they are eligible for based on 2020 income will receive the difference after filing a 2020 tax return, but overpayments (as a result of higher income in 2020) will not need to be paid back. However, the specific reconciliation details are not yet clear.
Once finalized, it is expected that most people will get their payments within two to three weeks either by check or direct deposit.
To estimate the amount of your stimulus check, visit the Washington Post's Stimulus Check Calculator.
I am a business owner in Illinois, what assistance is currently available?
Governor Pritzker announced this week a new package of emergency assistance programs for small businesses in need of additional capital, totaling more than $90 million. Illinois businesses should visit the Department of Commerce and Economic Opportunity (DCEO) website to review the details of the available programs, application deadlines, and to apply online.
We will keep our clients updated as information on available aid for businesses becomes available, including provisions of the CARES act.